Israel's forex reserves up $4.8b in June to new record

Bank of Israel Photo: Shutterstock ASAP Creative

The Bank of Israel purchased $1.445 billion in foreign currency last month in efforts to weaken the shekel.

Israel’s foreign exchange reserves at the end of June 2020 stood at a record $147.337 billion, up $4.824 billion from their level at the end of the previous month, the Bank of Israel reports. The reserves represent 36.7% of GDP.

The increase was the result of foreign exchange purchases by the Bank of Israel totaling $1.445 billion in efforts to help exporters by weakening the shekel. The Bank of Israel has now purchased $4 billion in foreign currency over the past two months to keep the shekel-dollar exchange rate from falling below NIS 3.40/$.

In addition the forex reserves were boosted in June by an absorption of short-term dollar credit totaling $2.3 billion and a revaluation that increased the reserves by $1.555 billion.

The increase was partly offset by government transfers abroad totaling $462 million and private sector transfers of $14 million.

Over the past 12 months, Israel's foreign currency reserves have risen 22.6% from $120.108 billion to $147.337 billion.

Published by Globes, Israel business news - en.globes.co.il - on July 7, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Bank of Israel Photo: Shutterstock ASAP Creative
Bank of Israel Photo: Shutterstock ASAP Creative
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